This study explores the impact of stakeholder orientation laws on firms’ CSR engagement strategies, with particular attention to their allocation between material and immaterial CSR issues. Building on stakeholder theory and the concept of CSR materiality, we argue that stakeholder-oriented governance drives firms to expand their CSR efforts, with greater emphasis on immaterial CSR to align with broader societal objectives. We also examine the role of analyst coverage as a moderating factor, enhancing the scrutiny and accountability of firms’ CSR activities. Our findings contribute to the literature on corporate governance, CSR materiality, and stakeholder theory, offering insights into how firms adapt to evolving governance frameworks.
